AQUILA EUROPEAN RENEWABLES PLC
LEI No: 213800UKH1TZIC9ZRP41
HALF-YEARLY REPORT
FOR THE SIX MONTHS ENDED
INVESTMENT OBJECTIVE
The Company's Investment Objective is to realise all existing assets in the Company's portfolio in an orderly manner.
HIGHLIGHTS
FINANCIAL INFORMATION
as at
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Ordinary Share Price (cents) |
62.6 |
64.9 |
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NAV per Ordinary Share (cents)1 |
73.9 |
88.7 |
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Ordinary Share price Discount to NAV1 |
(15.3%) |
(26.9%) |
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Net Assets (EUR million) |
279.3 |
335.3 |
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Dividend Yield4 |
5.0% |
8.9% |
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Dividends per Ordinary Share (cents)3 |
1.58 |
2.9 |
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Ongoing Charges1,5 |
1.0% |
1.1% |
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Total NAV Return per Ordinary Share1,2 |
(10.9%) |
(7.1%) |
1. This disclosure is considered to represent the Company's alternative performance measures ("APMs"). Definitions of these APMs and other performance measures used, together with how these measures have been calculated, can be found below. All references to cents are in euros, unless stated otherwise.
2. Calculation based on NAV per Ordinary Share in euros, includes dividends and assumes no reinvestment of dividends.
3. Dividends paid/payable and declared relating to the period.
4. Dividend yield is calculated by annualising the dividends paid year to date per share by the current market share price as at
5. Calculation based on average NAV over the period and regular recurring annual operating costs of the Company, further details can be found below.
AT A GLANCE
Portfolio Breakdown1
Solar PV - 230.7 MWp
Wind energy - 174.8 MW
As a result of the diversification of generation technologies, the seasonal production patterns of these asset types complement each other, balancing cash flow, whereas the geographic diversification serves to reduce exposure to any one single energy market.
CHAIRMAN'S STATEMENT
INTRODUCTION
In the first half of 2025, the Company continued to implement its Managed Wind-Down strategy, progressing realisations where market conditions have allowed. As at the date of this Interim Report, the Company has completed the sale of Sagres (its hydropower investment in
As detailed in the Company's announcement 'Update on Sales Process' published on
The current market for renewable generation investments in
(i) lower-than-expected resource, with the Company's assets affected by subdued wind conditions and below-average solar irradiation;
(ii) electricity prices in the first half of 2025 coming in below expectations, alongside a substantial reduction in forward price forecasts since the end of 2024; and
(iii) increased cost pressures, particularly in relation to grid balancing activities.
These factors, combined with a decision to increase the discount rates applied to the valuation of the Company's investments to reflect the current high risk environment and in line with listed peers, resulted in a 12.8% decrease in the gross asset value and a 10.2% reduction in net asset value between
The Company's share price moved from
KEY DEVELOPMENTS
As referred to in the Introduction, in
PERFORMANCE
The Company's NAV per Ordinary Share was
In 2025, the Company has paid or declared dividends of
Over the reporting period, total revenue was 31.2% below budget due to persistently lower short-term electricity spot market prices across most portfolio markets. This reflects the continued decline in commodity prices compared to the previous year, subdued power demand from a mild winter across
ESG
Despite the Company being in Managed Wind-Down, the portfolio continues to contribute towards the UN Sustainable Development Goals to ensure access to affordable, reliable, sustainable and modern energy for all. Full details of the Company's approach to combating climate change, enhancing biodiversity, boosting regional and local community engagement, ensuring sustainable supply chain management and best-practice labour standards, as well as other environmental and social topics, can be found in this dedicated report.
OUTLOOK
The Board remains confident in the long-term fundamentals of the European renewable energy sector, supported by the urgent need to decarbonise energy systems, favourable European regulatory frameworks promoting energy security, and expected growth in power demand from industrial recovery, electrification of heat and transport, and the expanding requirements of data centres and artificial intelligence ("AI"). AI in particular is anticipated to be a significant driver of future energy consumption, underscored by the
In the context of the Company's Managed Wind-Down, the Board's priority is to complete the asset sale programme efficiently, while safeguarding value and returning capital to shareholders in a timely and cost-effective manner.
Chairman
1. Raised capital including shares issued to the Investment Adviser as payment of the management fee.
INVESTMENT ADVISER'S REPORT
Leader in Investment and Asset Management in European Renewables
Overall CO₂eq emissions avoided2
3.4 million tonnes
Green energy produced2
11.8 TWh
Households supplied2
3.3 million
INVESTMENT ADVISER BACKGROUND1
Aquila Capital Investmentgesellschaft mbH ('
The Investment Adviser's expert investment teams comprise 700 employees worldwide. Moreover, the strategic partnership entered into in 2019 with
The Company's
The Investment Adviser announced a strategic partnership with Commerzbank AG on
1. Figures presented in this section refer to
2. Data as at
As part of this partnership, Commerzbank acquired a 74.9% stake in
Current Renewables Portfolio of
Portfolio Capacity2
Wind energy
4,702 MW
1,010 WTGs
Solar PV
15,733 MWp
370 PV parks
Hydropower
1,050 MW
295 plants
Energy storage systems
4,190 MW
15 projects
19 Offices
1. Map is shown for illustrative purposes only. Exact locations of offices and assets might deviate. Points indicate one or more assets and are not indicative of size.
2. Data as at
INVESTMENT PORTFOLIO
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Asset Life |
Equipment Manufacturer |
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Acquisition |
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Holmen II |
Wind energy |
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18.0 MW |
Operational |
2018 |
25y |
Vestas |
FiP |
Energie.dk |
100.0% |
33.1% |
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Olhava |
Wind energy |
|
34.6 MW |
Operational |
2013-2015 |
30y |
Vestas |
FiT |
Finnish Energy |
100.0% |
26.6% |
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Svindbaek |
Wind energy |
|
32.0 MW |
Operational |
2018 |
29y |
Siemens |
FiP |
Energie.dk |
99.9% |
17.7% |
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The Rock |
Wind energy |
|
400.0 MW |
Operational |
2022 |
30y |
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PPA |
Alcoa |
13.7%3 |
63.8% |
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Benfica III |
Solar PV |
|
19.7 MW |
Operational |
2017, |
40y |
AstroNova |
PPA |
Axpo |
100.0% |
0.0% |
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Albeniz |
Solar PV |
|
50.0 MW |
Operational |
2020 |
40y |
Canadian Solar |
PPA |
Statkraft |
100.0% |
25.1% |
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Desfina |
Wind energy |
|
40.0 MW |
Operational |
2022 |
25y |
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FiP |
DAPEEP |
89.0%5 |
54.9% |
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Ourique |
Solar PV |
|
62.1 MW |
Operational |
2020 |
40y |
Suntec |
CfD |
ENI |
50.0%3 |
0.0% |
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Greco |
Solar PV |
|
100.0 MW |
Operational |
2019 |
40y |
Jinko |
PPA |
Statkraft |
100.0% |
30.2% |
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Tiza |
Solar PV |
|
30.0 MW |
Operational |
2023 |
40y |
Canadian Solar |
PPA |
Axpo |
100.0% |
33.5% |
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--------------- |
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Total (AER Share) |
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405.5 MW |
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========= |
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1. Installed capacity at 100% ownership.
2. COD = Commissioning date.
3. PPA = Power Purchase Agreement, FiT = Feed-in tariff. FiP = Feed-in premium, CfD = Contract for Difference.
4. Leverage level calculated as a percent of debt plus fair value as at
5. Represents voting interest. Economic interest is approximately 89.9%.
PORTFOLIO UPDATE AS AT
Sagres
In
The Board is working with its advisers to explore options to return surplus capital to shareholders following the receipt of Sagres sale proceeds.
Olhava
Olhava is in lock-up following debt covenant breaches driven by a combination of factors including lower than forecast realised power prices and production, elevated grid balancing costs and high debt repayment obligations, which are expected to ease from the end of 2025. It has been necessary to make equity cure payments from the resources of the company which owns Olhava and agree that payments under the shareholder loan and of dividends are suspended until the end of
Debt
The Board decided to let the revolving credit facility expire on
CONTRACTED REVENUE POSITION1
Revenue Mix - Existing Contracts
Present Value of Revenues (Five Years)2
The Board and Investment Adviser are not actively entering into new hedging opportunities unless the commercial terms are compelling given the Board's focus on the Managed Wind-Down process. In the first half of 2025 the share of production sold at market prices was 52.2 compared with 49.0% as at the end of 2024.
Contracted revenue net present value1
Contracted revenue1,2 (aggregate over asset life)
Contracted revenue over the next five years2
47.8%
Weighted average contracted revenue life
9.9 years
1. Contracted revenue as at
2. Aggregate contracted revenue over entire asset life (not discounted).
FINANCIAL PERFORMANCE
PERFORMANCE1
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Variance |
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Technology |
Region |
1H25 |
1H241 |
Variance (%) |
P50 budget |
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Wind energy |
|
206.7 |
226.1 |
(8.6%) |
(17.2%) |
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Solar PV |
|
159.5 |
190.9 |
(16.5%) |
(32.1%) |
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--------------- |
--------------- |
--------------- |
--------------- |
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Total |
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366.2 |
417.0 |
(12.2%) |
(24.4%) |
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========= |
========= |
========= |
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Load Factors |
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Technology |
|
1H25 |
1H24 |
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Wind energy |
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30.0% |
30.7% |
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Solar PV |
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14.0% |
18.8% |
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--------------- |
--------------- |
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Total |
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24.9% |
27.4% |
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========= |
========= |
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Technical Availability2 |
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Technology |
1H25 |
1H24 |
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Wind energy |
96.1% |
93.6% |
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Solar PV |
92.4% |
99.3% |
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--------------- |
--------------- |
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Total |
94.6% |
96.9% |
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========= |
========= |
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Revenues3 (EUR million) |
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Technology |
1H25 |
1H24 |
Variance (%) |
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Wind energy |
10.9 |
14.3 |
(23.5%) |
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Solar PV |
7.1 |
9.2 |
(22.5%) |
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--------------- |
--------------- |
--------------- |
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Total |
18.0 |
23.4 |
(23.1%) |
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1. Value adjusted for the assets sold so that a comparison is possible.
2. Average technical availability based on weighted installed capacity (AER share).
3. Includes merchant revenue, contracted revenue and other revenue (e.g. Guarantees of Origin, Electricity Certificates).
1H25 Monthly Production Performance vs. Budget
The portfolio's production was 24.4% below budget over the reporting period, primarily due to lower irradiation for the solar portfolio, curtailment of the Iberian solar PV assets due to periods of negative market prices (c. 33% below forecast) and a combination of low irradiation and a failure of a transformer in
If the technical availability of a plant falls below the guaranteed level, the compensation is contractually defined in the respective EPC or O&M agreement in the form of liquidated damages. However, for certain assets, this compensation is calculated based on the annual technical availability. As long as the year-end value remains above the guaranteed threshold, no liquidated damages are payable.
In
GEARING1
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As at |
As at |
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NAV |
279.3 |
320.2 |
(12.8)% |
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Debt2 |
144.7 |
151.9 |
(4.7)% |
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GAV |
424.0 |
472.2 |
(10.2)% |
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Debt (% of GAV)3 |
34.1 |
32.2 |
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Project debt weighted average maturity (years) |
8.1 |
10.7 |
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Project debt weighted average interest rate (%)4 |
3.1 |
3.1 |
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========= |
========= |
In the first half of 2025, a total of
As of
DEBT SUMMARY AS AT
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Drawn Debt |
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Hedged |
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Olhava |
100.0% |
8.1 |
EUR |
Fully amortising |
Dec-30/Sep-31 |
100.0% |
Bank Debt |
|
Holmen II |
100.0% |
9.8 |
DKK |
Fully amortising |
Dec-37 |
92.6% |
Bank Debt |
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Svindbaek |
99.9% |
6.2 |
DKK |
Fully amortising |
Dec-37 |
100.0% |
Bank Debt |
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The Rock: USPP Bond |
13.7% |
29.9 |
EUR |
Fully amortising |
Sep-45 |
100.0% |
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The Rock: Green Bond |
13.7% |
10.9 |
EUR |
Bullet |
Sep-26 |
100.0% |
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Desfina |
89.0% |
31.3 |
EUR |
Fully amortising |
Dec-39 |
100.0% |
Bank Debt |
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Albeniz |
100.0% |
10.6 |
EUR |
Partly amortising |
Dec-28 |
90.0% |
Bank Debt |
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100.0% |
11.9 |
EUR |
Partly amortising |
Dec-28 |
90.0% |
Bank Debt |
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Guillena |
100.0% |
16.4 |
EUR |
Partly amortising |
Dec-28 |
90.0% |
Bank Debt |
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Tiza |
100.0% |
9.4 |
EUR |
Partly amortising |
Dec-28 |
90.0% |
Bank Debt |
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--------------- |
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Total |
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144.7 |
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95.3% |
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1. Foreign currency values converted to EUR as at
2. Debt corresponds to senior debt secured at project level.
3. This disclosure is considered to represent the Company's alternative performance measures ("APMs"). Definitions of these APMs and other performance measures used, together with how these measures have been calculated, can be found below. All references to cents are in euros, unless stated otherwise.
4. Weighted average all in interest rate for EUR denominated debt. DKK denominated debt has an average weighted interest rate of 2.7% (
VALUATION
The Company's NAV as at
Dividends of
The main drivers of NAV movement in the value of investments in the reporting period include:
· Reductions in forecast European power price curves, which on average across the portfolio decreased over the next 5 years compared to the last quarter, accounting for 4.6% of the decline in NAV; and
· An increase to the portfolio discount rate to 8.8% in line with the company listed peers due to the following reasons:
o Increase in risk free rate especially in the long run due to ongoing uncertainties in the markets (international conflicts, US tariff policy)
o Higher return expectations reflecting the challenging environment for wind and solar investments
o Change in power price mix applied to the Northern Europe Wind investments leading to higher cash flow forecasts and consequently higher discount rate
o As a result, the increase in the portfolio discount rate accounted for a 5.2% decline in NAV.
VALUATION METHODOLOGY
The Company owns 100.0% of its subsidiary
The Company has acquired underlying investments in SPVs through its investment in the
All SPV investments are at fair value through profit or loss and are valued using the IFRS 13 framework for fair value measurement. The economic assumptions shown below were used in the valuation of the SPVs.
VALUATION ASSUMPTIONS
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As at |
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Discount rates |
The discount rate used in the valuations is calculated according to internationally recognised methods. Typical components of the discount rate are risk free rates, country-specific and asset-specific risk premia. |
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Power price |
Power prices are based on power price forecasts from leading market analysts. The forecasts are independently sourced from providers with coverage in almost all European markets as well as providers with regional expertise. The approach is consistently applied to all asset classes (wind and solar PV) and typically remains unchanged using a blend of two power price curve providers. However, in respect of the valuations for wind investments in In the meantime, the valuations of wind Investments in |
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Energy yield/load factors |
Estimates are based on third party energy yield assessments, which consider historic production data (where applicable) and other relevant factors. |
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Inflation rates |
Long-term inflation is based on the monetary policy of the |
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Asset life |
In general, an operating life of 25 to 30 years for onshore wind and 40 years for solar PV is assumed. In individual cases, a longer operating life is assumed where the contractual arrangement (i.e. O&M agreement with availability guarantee) supports such an assumption. |
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Operating expenses |
Operating expenses are primarily based on respective contracts and, where not contracted, on the assessment of a technical adviser. |
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Taxation rates |
Underlying country-specific tax rates are derived from due diligence reports from leading tax consulting firms. |
VALUATION SENSITIVITIES
The fair value of the Company's investment in
For each of the sensitivities, it is assumed that potential changes occur independently of each other with no effect on any other base case assumption, and that the number of investments in the SPVs remains static throughout the modelled life.
The NAV per share impacts from each sensitivity are shown below:
(i) Discount Rates
The DCF valuation of the SPV investments represents the largest component of the NAV of the Company and the key sensitivities are considered to be the discount rate used in the DCF valuation assumptions.
The weighted average valuation discount rate applied to calculate the SPV valuation is 8.8% at
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-0.5% Change |
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+0.5% Change |
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NAV per |
NAV |
Total NAV |
NAV |
NAV per |
|
Valuation as of |
3.3 |
291,986 |
279,328 |
267,631 |
(3.1) |
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========= |
========= |
========= |
========= |
========= |
(ii) Power Price
Long-term power price forecasts are provided by leading market consultants and are updated quarterly. The sensitivity below assumes a 10% increase or decrease in merchant power prices relative to the base case for every year of the asset life.
The sensitivity considers a flat 10% movement in power prices for all years, i.e. the effect of adjusting the forecast electricity price assumptions in each of the jurisdictions applicable to the SPV down by 10% and up by 10% from the base case assumptions for each year throughout the operating life of the SPV.
A change in the forecast electricity price assumptions by plus or minus 10% has the following effect on valuation, as shown below.
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-10% Change |
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+10% Change |
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NAV per |
NAV |
Total NAV |
NAV |
NAV per |
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Valuation as of |
(9.2) |
244,459 |
279,328 |
313,163 |
8.9 |
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========= |
========= |
========= |
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(iii) ENERGY YIELD
The base case assumes a "P50" level of output. The P50 output is the estimated annual amount of electricity generation (in MW) that has a 50% probability of being exceeded both in any single year and over the long term and a 50% probability of being underachieved. Hence the P50 is the expected level of generation over the long term. The sensitivity illustrates the effect of assuming "P90 10 years" (a downside case) and "P10 10 years" (an upside case) energy production scenarios. A P90 10 years downside case assumes the average annual level of electricity generation that has a 90% probability of being exceeded over a ten-year period. A P10 10 years upside case assumes the average annual level of electricity generation that has a 10% probability of being exceeded over a ten-year period. This means that the SPV aggregate production outcome for any given ten-year period would be expected to fall somewhere between these P90 and P10 levels with an 80% confidence level, with a 10% probability of it falling below that range of outcomes and a 10% probability of it exceeding that range. The sensitivity does not include the portfolio effect which would reduce the variability because of the geographical diversification. The sensitivity is applied throughout the next ten years.
The table below shows the sensitivity of the SPV value to changes in the energy yield applied to cash flows from project companies in the SPV as per the terms P90, P50 and P10 explained above.
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NAV per |
P90 |
Total NAV |
P10 |
NAV per |
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Valuation as of |
(4.8) |
261,239 |
279,328 |
301,772 |
5.9 |
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========= |
========= |
========= |
========= |
========= |
(iv) Inflation Rates
The projects' income streams are principally a mix of government regulated tariffs, fixed-price PPAs and merchant revenues. Government regulated tariffs and fixed-price PPAs tend not to be inflation linked, whilst merchant revenues are generally subject to inflation. The current contractual life of government regulated tariffs and fixed-price PPAs are shorter than their respective asset lives, meaning, from a valuation perspective, the assets are more exposed to merchant revenues in the late asset life. As described earlier, the Company intends to renew power price hedges (e.g. in the form of PPAs or other mechanisms) before the existing contracts (PPAs and government-regulated tariffs) expire. This rolling hedge strategy is not reflected in the sensitivities illustrated above. The projects' management and maintenance expenses typically move with inflation; however, debt payments are fixed. This results in the SPV returns and valuation being positively correlated to inflation. The SPVs valuation assumes long-term inflation of 2.0% p.a.
The sensitivity illustrates the effect of a 0.5% decrease and a 0.5% increase from the assumed annual inflation rates in the financial model for each year throughout the operating life of the SPV.
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NAV per |
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Total NAV |
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NAV per |
|
Valuation as of |
(2.9) |
268,383 |
279,328 |
290,971 |
3.1 |
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========= |
========= |
========= |
========= |
========= |
(v) Asset Life
In general, an operating life of 25 to 30 years for onshore wind energy and 30 years for solar PV is assumed. In individual cases, a longer operating life is assumed where the contractual set-up (i.e. O&M agreement with availability guarantee) supports such an assumption.
The sensitivity below shows the valuation impact from a one-year adjustment to the asset life across the portfolio.
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NAV per |
|
Total NAV |
|
NAV per |
|
Valuation as of |
(1.0) |
275,588 |
279,328 |
282,031 |
0.7 |
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========= |
========= |
========= |
========= |
========= |
(vi) Operating Expenses
The sensitivity shows the effect of a 10.0% decrease and a 10.0% increase to the base case for annual operating costs for the SPV, in each case assuming that the change to the base case for operating costs occurs with effect from
An increase or decrease in operating expenses by 10% at SPV level has the following effect on valuation, as shown below.
|
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NAV per |
|
Total NAV |
|
NAV per |
|
Valuation as of |
3.6 |
265,357 |
279,328 |
292,962 |
(3.7) |
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========= |
========= |
========= |
========= |
PORTFOLIO VALUATION - KEY ASSUMPTIONS
|
Metric |
|
1H25 |
1H24 |
|
Discount rate |
Weighted average |
8.8% |
7.3% |
|
Long-term inflation |
Weighted average |
2.0% |
2.0% |
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Remaining asset life1 |
Wind energy (years) |
21 |
22 |
|
|
Solar PV (years) |
35 |
35 |
|
Operating life assumption2 |
Wind energy (years) |
28 |
28 |
|
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Solar PV (years) |
40 |
40 |
Assumptions were made as at
1. Remaining asset life based on net full load years. Does not consider any potential asset life extensions.
2. Asset life assumption from date of commissioning.
VALUATION SENSITIVITIES
MARKET COMMENTARY AND OUTLOOK
Electricity Price Forecasts - All Assets (Weighted Average)
Power price forecasts used in respect of the period ended
There was a significant widening of the discount between capture and wholesale prices compared to Q4 2024. This reflects the stronger cannibalization effects that occur as renewable penetration increases.
Changes to wholesale and capture power price forecasts for the Company's solar PV investments were less significant although the capture price discount to wholesale prices widened by 6% to an average discount of c. 28% over the next 10 years with this change offsetting slight improvements in wholesale power price forecasts in these markets over the same period.
MARKET PRICES
In the first half of 2025, European power markets experienced strong volatility. Prices rose early in the year, driven by higher gas costs, seasonal demand, and lower wind generation, while the
NORDICS
In the first half of 2025, the Nordic power market showed pronounced volatility. During the first quarter, the system spot price averaged in the mid-40s EUR/MWh, up significantly from the previous quarter, driven by higher winter demand and elevated commodity prices. In contrast, the second quarter saw prices fall to the mid-20s EUR/MWh, as hydro reservoirs approached 90 percent capacity, wind generation increased sharply-particularly in
Over the past year,
IBERIA
Iberian power prices experienced a strong downward trend. Early in the year, prices eased compared to the previous quarter, supported by higher hydro availability, stable commodity prices, and above-average wind generation, which reduced reliance on gas-fired generation. Spot prices averaged in the mid-80s EUR/MWh, while front-year forward contracts were slightly lower than in the previous quarter. During spring, prices fell sharply as record solar output contributed a growing share of the generation mix and hydro reservoirs recovered, leading to temporarily negative spot prices in May which prompted curtailment of production to reduce losses. Solar capture prices dropped significantly due to midday oversupply, while forward prices remained relatively stable, reflecting ongoing gas price volatility despite abundant renewable generation.
Power prices in
OUTLOOK
The macroeconomic environment in the first half of 2025 has remained challenging, but the Company expects gradual improvements in market conditions over the remainder of the year. Key supportive factors include the potential stabilization of energy commodity markets following the sharp price corrections observed in spring and the continued easing of inflationary pressures across the
Despite these challenges, the Company remains confident in the long-term outlook for the renewable energy sector. The urgent need to decarbonise energy supply, coupled with supportive European regulatory frameworks, is expected to continue driving investment. Rising power demand from industrial recovery, electrification of transport and heat, and growing energy needs from data centres and advanced AI applications will provide sustained growth opportunities for the sector.
Aquila Capital Investmentgesellschaft mbH
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
1. Environmental
In 2022,
Using the appropriate tools, due-diligence procedures and experts,
AER is invested in a diversified portfolio of renewable energy infrastructure investments, such as wind and solar parks, across continental
AER's Contribution to the UN Sustainable Development Goals
At least a 40.0% decline below 1990 levels in greenhouse gas emissions
A 32.0% share of renewables in the energy system
A 32.5% improvement in energy efficiency
AER's Contribution to the UN Sustainable Development Goals
|
|
|
Contribution |
|
Ensure access to affordable, reliable, sustainable and modern energy for all |
· AER's portfolio produces renewable energy which contributes towards · Renewable energy is a cost-effective source of energy compared to other options · AER's investments in renewable assets help support and encourage further investment in the industry |
7 |
|
Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation |
· AER targets renewable investments that are supported by high quality components and infrastructure to optimise the energy yield and subsequent return to investors · AER's investments help support the construction of shared infrastructure (e.g. substations) which enables the further expansion of renewable energy sources · AER's Investment Adviser is responsible for monitoring and optimising the Company's day-to-day asset performance. This process also involves actively exploring how new technologies and other forms of innovation can be utilised to enhance asset performance and sustainability (energy yield, O&M, asset life) |
9 |
|
Take urgent action to combat climate change and its impacts |
· The Company's 463.8 MW portfolio powered approximately 144.3 thousand households and avoided approximately 145.3 thousand tonnes of CO2 emissions over the reporting period1 · As a signatory to the UN Principles for Responsible Investments (" |
13 |
1. Actual AER contributions as at
Environmental Initiatives
The natural environment around some of the Company's solar PV parks is the
Several visits per month are made to implement the measures, monitor their evolution and make necessary adjustments. Below is a selection of closely monitored measures implemented across some of the Company's solar PV parks for local flora and fauna.
Flora
· Translocation of rain-fed olive trees
· Planting of broom and palmetto trees to promote landscape integration and the creation of biotopes appropriate for local species
· Clearing of vegetation through sheep grazing
· Regular maintenance measures and monitoring
Fauna
· Drinking troughs, feeding troughs and perches were installed in order to suit the local fauna
· A hunting fence was installed to protect wildlife
· Bird nest boxes were installed, specifically for the nesting of the lesser kestrel, common kestrel, barn owl and little owl species
· A study commissioned to analyse the degree of adaptation of bird species to the presence of the solar PV parks, with special emphasis on the lesser kestrel and Montagu's harrier species
· Stands for wild rabbits built to help the breeding and survival of this species
2. Social
Renewable energy projects can have an inherent major positive impact on the environment with their ability to decarbonise the energy sector, aiding the Company in the transition to a low-carbon economy. In light of the European Green Deal boosting renewable energy projects, investment into clean-energy assets has accelerated over recent years. As renewable energy deployment increases, pressure on land is growing. The need to protect biodiversity may result in conflicts over agricultural and renewable energy land usage. Conflicts can arise when new renewable projects compete against other types of land usage, such as residential housing, recreational areas, agriculture and nature conservation, or when they cause landscape disruptions. Engagement with local communities is an integral part of the Company's investment philosophy. The assets continue to support communities by contracting local service providers, paying local taxes, and lease payments for use of the land.
3. Governance
Independent Board of Directors
The independent Board of Directors is responsible for AERʼs governance and sustainability policy and its implementation, with the daily operations being delegated to its independent AIFM,
Board and Employee Diversity
The Board of Directors is appointed based on expertise and merit, being mindful of the benefits generated by diversity. The Board comprises members with different skills and experiences, while endeavouring to comply with the Listing Rules on diversity. The current Board comprises three men and two women, all non-executive Directors who have a significant number of years of experience in their relevant fields. Additionally, the Investment Adviser is also mindful of the benefits provided by diversification, both in culture (some 30 nationalities are represented among its employees), and in gender (its gender ratio is 62% male and 38% female).
AER Board:
Men Women
3 2
Investment Adviser:
Men Women
62% 38%
60
Different nationalities
5
GENDER EQUITY
BOARD OF DIRECTORS
The AER Board comprises five directors with deep expertise across private equity, law, and the energy sector (including renewables).
Non-Executive Chairman
Appointed on
Role
Chairman of the Board
Non-executive Director
Appointed on
In 2017, Myrtle received recognition for her contribution to business, having featured in Breaking the Glass Ceiling and being selected as one of 100 Women to Watch in the Cranfield FTSE Board Report 2017. In 2021 she was recognised by TE:100 as one of the Women of the Energy Transition.
Role
Member of the
Non-executive Director
Appointed on
Role
Chair of the
Non-executive Director
Appointed on
Role
Member of the
Non-executive Director
Appointed on
Dr
Role
Chair of the
INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT
The Directors are required to provide an Interim Management Report in accordance with the Financial Conduct Authority ("FCA") Disclosure Guidance and Transparency Rules ("DTR"). The Chairman's Statement and the Investment Adviser's Report in this Half-Yearly Report provide details of the important events which have occurred during the period and their impact on the financial statements. The following statements on Related Party Transactions, Going Concern, the Statement of Directors' Responsibilities, the Chairman's Statement and Investment Adviser's Report, together constitute the Interim Management Report of the Company for the six months ended
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company were detailed in the Company's most recent Annual Report for the year ended
· Economic and Political Risk - The revenue and value of the Company's investments may be affected by future changes in the economic and political situation;
· Power Price Risks - The risk that revenues decrease from sales of power at prevailing market prices. In the year to date there has been a reduction in expected European power price curves, which on average fell across the portfolio over the next five years contributing to a decline in NAV (around 4.6%);
· Operational Risk - The risk that the portfolio underperforms and, as a result, the target returns are not met over the longer term. The risk that service providers to the Company underperform, and as a result, impact the Company's performance, reporting or reputation;
· Financial Risk - The risk that the valuations and underlying assumptions used to value the investment portfolio are not a fair reflection of the market, resulting in the investment portfolio being over or under-valued;
· Compliance, Tax and Legal Risk - The failure to comply with relevant regulatory changes, tax rules and obligations may result in reputational damage or create a financial loss to the Company; and
· Emerging Risk - As the run-off progresses there will be a significantly reduced size to the portfolio, which will in turn reduce the IA fee and potentially place a strain on available IA resourcing. As several costs are fixed, this will potentially lead to a growing cost base relative to the size of the Company.
Principal risks, including emerging risks, are mitigated and managed by the Board through policy setting and regular reviews of the Company's risk matrix by the Audit Committee to ensure that procedures are in place with the intention of minimising the impact of the above-mentioned risks. The Board relies on periodic reports provided by the Alternative Investment Fund Manager, Investment Adviser and Administrator regarding risks that the Company faces. When required, experts will be employed to gather information, including legal advisers and environmental advisers.
The Company's Annual Report for the year ended 31 December 2024 contains more detail on the Company's principal risks and uncertainties, including the Board's ongoing process to identify, and where possible mitigate, the risks.
The Board is of the opinion that these principal risks are equally applicable to the remaining six months of the financial year as they were to the six months being reported on.
Related Party Transactions
The Company's Investment Adviser, Aquila Capital Investmentgesellschaft mbH, and Directors are considered related parties under the Listing Rules. Details of the amounts paid to the Company's Investment Adviser and the Directors during the period are detailed in note 11 below.
Going Concern
As at the date of this report the Directors are required to consider whether they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and for a period of twelve months from the date of the signing of these financial statements (the "going concern period"). Following the General Meeting held on 30 September 2024 at which shareholders unanimously voted in favour of the discontinuation of the Company and a change in the Company's Objective and Investment Policy in order to facilitate the Managed Wind-Down of the Company, the process for an orderly realisation of the Company's assets and a return of capital to shareholders has begun and is expected to conclude over a number of years. The Company is preparing its financial statements on a going concern basis, although it is recognised that there is material uncertainty over whether the Company will be in existence in its current form twelve months from the date of signing of these financial statements, based on whether the Managed Wind-Down process were to conclude during the going concern period. These events therefore indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.
The Board will seek to realise all of the Company's assets in a manner that achieves a balance between maximising the proceeds received by the Company from the sale of those and making timely returns to Shareholders.
The Directors are satisfied that the Company has adequate resources to continue in operation throughout the Managed Wind-Down period and to meet all liabilities as they fall due. No material adjustments to accounting policies or the valuation methodology have arisen as a result of entering Managed Wind-Down.
Statement of Directors' Responsibilities
The DTR of the FCA requires the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements. The Directors confirm to the best of their knowledge that:
· the financial statements contained within the Half-Yearly Report has been prepared in accordance with the International Accounting Standard 34 - IAS 34 Interim Financial Reporting; and
· the Interim Management Report, together with the Chairman's Statement and Investment Manager's Report, includes a fair review of the information required by 4.2.7R and 4.2.8R of the FCA Disclosure Guidance and Transparency Rules.
The Half-Yearly Report has not been reviewed by the Company's Auditors. The Half-Yearly Report was approved by the Board on 30 September 2025 and the above Responsibility Statement was signed on its behalf by the Chairman.
Chairman
For and on behalf of the Board
30 September 2025
Financials
STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2025
|
|
|
Six months ended 30 June 2025 |
Six months ended 30 June 2024 |
||||
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
Unrealised losses on investments |
|
- |
(40,112) |
(40,112) |
- |
(31,796) |
(31,796) |
|
Net foreign exchange losses |
|
- |
(13) |
(13) |
- |
(9) |
(9) |
|
Interest income |
4 |
7,672 |
- |
7,672 |
8,182 |
- |
8,182 |
|
Other income |
4 |
19 |
- |
19 |
- |
- |
- |
|
Investment Advisory fees |
5 |
(1,105) |
- |
(1,105) |
(1,266) |
- |
(1,266) |
|
Other expenses |
|
(1,397) |
- |
(1,397) |
(762) |
- |
(762) |
|
|
|
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
|
Profit/(Loss) on ordinary activities before finance costs and taxation |
|
5,189 |
(40,125) |
(34,936) |
6,154 |
(31,805) |
(25,651) |
|
Finance costs |
|
- |
- |
- |
- |
- |
- |
|
|
|
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
|
Profit/(Loss) on ordinary activities before taxation |
|
5,189 |
(40,125) |
(34,936) |
6,154 |
(31,805) |
(25,651) |
|
Taxation |
|
- |
- |
- |
- |
- |
- |
|
|
|
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
|
Profit/(Loss) on ordinary activities after taxation |
|
5,189 |
(40,125) |
(34,936) |
6,154 |
(31,805) |
(25,651) |
|
Return per Ordinary Share (cents) |
6 |
1.37c |
(10.61)c |
(9.24)c |
1.63c |
(8.41)c |
(6.78)c |
|
|
|
========= |
========= |
========= |
========= |
========= |
========= |
The total column of the Statement of Comprehensive Income is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.
Profit/(Loss) on ordinary activities after taxation is also the 'total comprehensive income/(loss) for the period.
The notes are an integral part of these financial statements.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025
|
|
|
As at |
As at |
|
Non-current assets |
|
|
|
|
Investments at fair value through profit or loss |
3 |
279,635 |
320,432 |
|
Current assets |
|
|
|
|
Trade and other receivables |
|
573 |
29 |
|
Cash and cash equivalents |
|
1,155 |
1,168 |
|
|
|
--------------- |
--------------- |
|
|
|
1,728 |
1,197 |
|
|
|
========= |
========= |
|
Creditors: amounts falling due within one year |
|
|
|
|
Other creditors |
|
(2,035) |
(1,397) |
|
|
|
--------------- |
--------------- |
|
|
|
(2,035) |
(1,397) |
|
|
|
========= |
========= |
|
Net current assets |
|
(307) |
200 |
|
|
|
========= |
========= |
|
Net assets |
|
279,328 |
320,232 |
|
|
|
========= |
========= |
|
Capital and reserves: equity |
|
|
|
|
Share capital |
7 |
4,082 |
4,082 |
|
Share premium |
|
255,643 |
255,643 |
|
Special distributable reserve |
s |
74,762 |
75,087 |
|
Capital reserve |
|
(55,678) |
(15,553) |
|
Revenue reserve |
|
519 |
973 |
|
|
|
--------------- |
--------------- |
|
Total Shareholders' funds |
|
279,328 |
320,232 |
|
|
|
========= |
========= |
|
Net assets per Ordinary Share (cents) |
8 |
73.87c |
84.69c |
|
|
|
========= |
========= |
Approved by the Board of Directors and authorised for issue on 30 September 2025 and signed on its behalf by:
Chairman
Company number: 11932433
The notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2025
|
|
|
|
|
Special |
|
|
|
|
Opening equity as at 1 January 2025 |
|
4,082 |
255,643 |
75,087 |
(15,553) |
973 |
320,232 |
|
Loss for the period |
|
- |
- |
- |
(40,125) |
5,189 |
(34,936) |
|
Dividends paid |
9 |
- |
- |
(325) |
- |
(5,643) |
(5,968) |
|
|
|
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
|
Closing equity as at 30 June 2025 |
|
4,082 |
255,643 |
74,762 |
(55,678) |
519 |
279,328 |
|
|
|
========= |
========= |
========= |
========= |
========= |
========= |
|
|
|
|
|
Special |
|
|
|
|
Opening equity as at 1 January 2024 |
|
4,082 |
255,643 |
87,717 |
23,919 |
1,180 |
372,541 |
|
Strategic review costs |
|
- |
|
(691) |
- |
- |
(691) |
|
Loss for the period |
|
- |
- |
|
(31,805) |
6,154 |
(25,651) |
|
Dividends paid |
|
- |
|
(3,971) |
- |
(6,719) |
(10,690) |
|
|
|
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
|
Closing equity as at 30 June 2024 |
|
4,082 |
255,643 |
83,055 |
(7,886) |
615 |
335,509 |
|
|
|
========= |
========= |
========= |
========= |
========= |
========= |
The notes are an integral part of these financial statements.
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2025
|
|
|
Six months |
Six months |
|
Operating activities |
|
|
|
|
Loss on ordinary activities before finance costs and taxation |
|
(34,936) |
(25,651) |
|
Adjustment for unrealised losses on investments |
|
40,112 |
31,796 |
|
(Increase)/Decrease in trade and other receivables |
|
(544) |
34 |
|
Increase/(Decrease) in other creditors |
|
638 |
(413) |
|
|
|
--------------- |
--------------- |
|
Net cash from operating activities |
|
5,270 |
5,766 |
|
|
|
========= |
========= |
|
Investing activities |
|
|
|
|
Repayment of investments |
3 |
685 |
5,316 |
|
|
|
--------------- |
--------------- |
|
Net cash from investing activities |
|
685 |
5,316 |
|
|
|
========= |
========= |
|
Financing activities |
|
|
|
|
Strategic review costs |
|
- |
(353) |
|
Dividends paid |
|
(5,968) |
(10,690) |
|
|
|
--------------- |
--------------- |
|
Net cash used in financing activities |
|
(5,968) |
(11,043) |
|
|
|
========= |
========= |
|
(Decrease)/Increase in cash and cash equivalents |
|
(13) |
39 |
|
Cash and cash equivalents at start of period |
|
1,168 |
1,532 |
|
|
|
--------------- |
--------------- |
|
Cash and cash equivalents at end of period |
|
1,155 |
1,571 |
|
|
|
========= |
========= |
The notes are an integral part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
1. General Information
Aquila European Renewables Plc ("AER", 'the Company') is a public company limited by shares, incorporated in
The registered office and principal place of business of the Company is 4th Floor, 140 Aldersgate St,
At a General Meeting held on 30 September 2024, shareholders approved a change in the Company's Investment Objective and Investment Policy. The new Investment Objective is to realise all existing assets in the Company's Portfolio in an orderly manner.
The Company's Investment Adviser is Aquila Capital Investmentgesellschaft mbH, authorised and regulated by the German Federal Financial Supervisory Authority.
Apex Listed Companies Services (
2. Basis of Preparation
The financial statements included in this Half-Yearly Report have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies, critical accounting judgements, estimates and assumptions are consistent and should be read in conjunction with the Company's latest annual audited financial statements for the period ended 31 December 2024. The financial statements for the year ended 31 December 2024 have been prepared in accordance with the
The interim financial statements have also been prepared as far as is relevant and applicable to the Company in accordance with the Statement of Recommended Practice ("SORP") issued by the Association of Investment Companies ("AIC") in July 2022. These financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements of 31 December 2024. The audited annual accounts for the year ended 31 December 2024 have been delivered to
The functional currency of the Company is euros (EUR), as this is the currency of the primary economic environment in which the Company operates. Accordingly, the financial statements are presented in euros, rounded to the nearest thousand euros, unless otherwise stated.
Accounting for Subsidiary
The Company owns 100.0% of its subsidiary
The
Going Concern
The Directors have adopted the going concern basis in preparing the financial statements, although it is recognised that there is material uncertainty over whether the Company will be in existence in its current form twelve months from the date of signing these financial statements. Details of the Directors' assessment of the going concern status of the Company, which considered the adequacy of the Company's resources, and the impact of risks and uncertainties are provided in the Interim Management Report which can be found above.
Critical Accounting Judgements, Estimates and Assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions in certain circumstances that affect reported amounts. These are judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.
The Directors have concluded that the Company meets the definition of an investment entity as defined in IFRS 10. This conclusion involved a degree of judgement and assessment as to whether the Company met the criteria outlined in IFRS 10.
The key assumptions that have a significant impact on the carrying value of the Companyʼs underlying investments in the SPVs are the discount rates, useful life of the assets, the rate of inflation, the price at which the power and associated benefits can be sold, the amount of electricity the assets are expected to produce and operating costs of the SPVs.
3. Investments at Fair Value through Profit and Loss
|
|
As at |
As at |
|
(a) Summary of valuation |
|
|
|
Analysis of closing balance: |
|
|
|
Investments held at fair value through profit or loss |
279,635 |
320,432 |
|
|
--------------- |
--------------- |
|
Total investments |
279,635 |
320,432 |
|
|
========= |
========= |
|
(b) Movements during the period |
|
|
|
Opening balance of investments, at cost |
335,887 |
348,415 |
|
Repayments during the period |
(685) |
(12,528) |
|
|
--------------- |
--------------- |
|
Cost of investments |
335,202 |
335,887 |
|
|
========= |
========= |
|
Revaluation of investments to fair value: |
|
|
|
Unrealised movement in fair value of investments |
(55,567) |
(15,455) |
|
|
--------------- |
--------------- |
|
Balance of capital reserves - investments held |
(55,567) |
(15,455) |
|
|
--------------- |
--------------- |
|
Fair value of investments |
279,635 |
320,432 |
|
|
========= |
========= |
|
(c) Losses on investments in the period |
|
|
|
Movement on unrealised valuation of investments held |
(40,112) |
(39,443) |
|
|
--------------- |
--------------- |
|
Losses on investments |
(40,112) |
(39,443) |
|
|
========= |
========= |
The fair value of the Companyʼs equity and the shareholder loans investment in
Fair Value Measurements
IFRS 13 requires disclosure of fair value measurement by level. The level of fair value hierarchy within the financial assets or financial liabilities is determined on the basis of the lowest level input significant to the fair value measurement. Financial assets and financial liabilities are classified in their entirety into only one of the following three levels:
Level 1
The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level 2
Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.
Level 3
Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. The classification of the Company's investments held at fair value is detailed in the table below:
|
|
As at 30 June 2025 |
|||
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
Investments at fair value through profit and loss |
- |
- |
279,635 |
279,635 |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
|
|
- |
- |
279,635 |
279,635 |
|
|
========= |
========= |
========= |
========= |
|
|
As at 31 December 2024 |
|||
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
Investments at fair value through profit and loss |
- |
- |
320,432 |
320,432 |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
|
|
- |
- |
320,432 |
320,432 |
|
|
========= |
========= |
========= |
========= |
Due to the nature of the investments, they are always expected to be classified as Level 3. There have been no transfers between levels during the period ended 30 June 2025 (31 December 2024: none). The movement on the Level 3 unquoted investments during the period is shown below:
|
|
As at |
As at |
|
Opening balance |
320,432 |
372,403 |
|
Repayments during the period |
(685) |
(12,528) |
|
Unrealised losses on investments adjustments |
(40,112) |
(39,443) |
|
|
--------------- |
--------------- |
|
Closing balance |
279,635 |
320,432 |
|
|
========= |
========= |
Valuation Methodology
The Investment Adviser has carried out fair market valuations of the SPV investments as at 30 June 2025 and the Directors have satisfied themselves as to the methodology used, the discount rates and key assumptions applied, and the valuation. All SPV investments are at fair value through profit or loss and are valued using the IFRS 13 framework for fair value measurement.
The key assumptions that have a significant impact on the carrying value of the Companyʼs underlying investments in SPVs are the discount rates, useful life of the assets, the rate of inflation, the price at which the power and associated benefits can be sold, the amount of electricity the assets are expected to produce and operating costs of the SPVs.
The discount factors applied to the cash flows are reviewed annually by the Investment Adviser to ensure they are at the appropriate level. The weighted average valuation discount rate applied to calculate the SPV valuation is 8.8% as at 30 June 2025 (31 December 2024: 7.3%).
Useful lives are based on the Investment Adviserʼs estimates of the period over which the assets will generate revenue, which are periodically reviewed for continued appropriateness. The assumption generally used for the useful life of the wind farms is 25 to 30 years and solar PV is 40 years. The actual useful life may be a shorter or longer period depending on the actual operating conditions experienced by the asset. The operating lives of hydropower assets are estimated in accordance with their expected concession terms.
The price at which the output from the generating assets is sold is a factor of both wholesale electricity prices and the revenue received from the government support regime. Future power prices are estimated using external third-party forecasts, which take the form of specialist consultancy reports. The future power price assumptions are reviewed as and when these forecasts are updated. There is an inherent uncertainty in future wholesale electricity price projection. Long-term power price forecasts are provided by leading marker consultants, updated quarterly.
Specifically commissioned external reports are used to estimate the expected electrical output from the wind and hydropower farm and solar PV assets, taking into account the expected average wind speed at each location and generation data from historical operation. The actual electrical output may differ considerably from that estimated in such a report mainly due to the variability of actual wind to that modelled in any one period. Assumptions around electrical output will be reviewed only if there is good reason to suggest there has been a material change in this expectation.
The P50 level of output is the estimated annual amount of electricity generation (in MW) that has a 50.0% probability of being exceeded both in any single year and over the long term and a 50.0% probability of being underachieved.
Climate risks can also affect the carrying value of the Company's underlying investments. The Company relies (via the
The operating costs of the SPV companies are frequently partly or wholly subject to inflation and an assumption is made that inflation will increase at a long-term rate. The SPV's valuation assumes long-term inflation of 2.0% (31 December 2024: 2.0%). The impact of physical and transition risks associated with climate change is assessed on a project-by-project basis and factored into the underlying cash flows as appropriate.
The following assumptions were used in the valuations:
|
|
|
As at |
As at |
|
Discount rate |
Weighted average |
8.8% |
7.3% |
|
Long-term inflation |
Weighted average |
2.0 |
2.0% |
|
Remaining asset life (weighted average)1 |
Wind energy |
21 |
23 |
|
|
Solar PV |
37 |
35 |
|
|
========= |
========= |
========= |
1 Remaining asset life based on net full load years.
4. Income
|
|
Six months |
Six months |
|
Interest income from shareholder loans |
7,672 |
8,164 |
|
Bank interest income |
- |
18 |
|
Other income |
19 |
- |
|
|
--------------- |
--------------- |
|
Total Income |
7,691 |
8,182 |
|
|
========= |
========= |
5. Investmet Advisory Fees
|
|
Six months ended 30 June 2025 |
Six months ended 30 June 2024 |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
Investment advisory fees |
1,105 |
- |
1,105 |
1,266 |
- |
1,266 |
|
|
========= |
========= |
========= |
========= |
========= |
========= |
Under the Investment Advisory Agreement, the following fee is payable to the Investment Adviser:
a) 0.75% per annum of NAV (plus VAT) of the Company up to EUR 300.0 million;
b) 0.65% per annum of NAV (plus VAT) of the Company between EUR 300.0 million and EUR 500.0 million; and
c) 0.55% per annum of NAV (plus VAT) of the Company above EUR 500.0 million.
6. Return Per Ordinary Share
Return per ordinary share is based on the loss for the period of EUR 34,936,000 (30 June 2024: loss of EUR 25,651,000) attributable to the weighted average number of Ordinary Shares in issue of 378,122,130 (30 June 2024: 378,122,130) in the period to 30 June 2025. Revenue profit and capital loss are EUR 5,189,000 (30 June 2024: EUR 6,154,000) and EUR 40,125,000 (30 June 2024: EUR 31,805,000) respectively.
|
|
For the |
For the |
|
Revenue return after taxation (EUR '000) |
5,189 |
6,154 |
|
Capital return after taxation (EUR '000) |
(40,125) |
(31,805) |
|
Total net return (EUR '000) |
(34,936) |
(25,651) |
|
Weighted average number of Ordinary Shares |
378,122,130 |
378,122,130 |
|
|
========== |
========== |
1. Remaining asset life based on net full load years. Includes Tesla, as at 30 June 2024.
7. TAXATION
|
|
Six months ended 30 June 2025 |
Six months ended 30 June 2025 |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
Corporation tax |
- |
- |
- |
- |
- |
- |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
--------------- |
|
Total tax charge for the period |
- |
- |
- |
- |
- |
- |
|
|
========= |
========= |
========= |
========= |
========= |
========= |
Investment companies that have been approved by
8. SHARE CAPITAL
|
|
As at 30 June 2025 |
As at 31 December 2024 |
||
|
|
No of shares |
(EUR '000) |
No of shares |
(EUR '000) |
|
Allotted, issued and fully paid Ordinary Shares of 1 cent each ("Ordinary Shares") |
378,122,130 |
3,781 |
378,122,130 |
3,781 |
|
|
------------------- |
------------------- |
------------------- |
------------------- |
|
Total |
378,122,130 |
3,781 |
378,122,130 |
3,781 |
|
|
=========== |
=========== |
=========== |
=========== |
The Ordinary Shares shall carry the right to receive the profits of the Company available for distribution and determined to be distributed by way of interim or final dividends at such times as the Directors may determine in accordance with the Articles of the Company. The holders of Ordinary Shares have the right to receive notice of, and to attend and vote at General Meetings of the Company.
There were no shares issued or purchased for treasury during the six month periods to 30 June 2025 or 31 December 2024.
9. NET ASSETS PER ORDINARY SHARE
Net assets per ordinary share as at 30 June 2025 are based on EUR 279,328,000 (31 December 2024: EUR 320,231,508) of net assets of the Company attributable to the 378,122,130 (31 December 2024: 378,122,130) Ordinary Shares in issue as at 30 June 2025.
10. DIVIDEND PAID
The Company has paid the following interim dividends in respect of the year under review:
|
|
Six months ended |
Six months ended |
||
|
|
Cents per |
|
Cents per |
|
|
31 December 2024 interim - paid 18 March 2025 (2024: 18 March 2024) |
0.79c |
2,987 |
1.3775c |
5,211 |
|
31 March 2025 interim - paid 13 June 2025 (2024: 14 June 2024) |
0.79c |
2,981 |
1.4475c |
5,479 |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
|
Total |
1.58c |
5,968 |
2.8250c |
10,690 |
|
|
========= |
========= |
========= |
========= |
The dividend relating to the period ended 30 June 2025, which is the basis on which the requirements of Section 1159 of the Corporation Tax Act 2010 are considered is detailed below:
|
|
Six months ended |
Six months ended |
||
|
|
Cents per |
|
Cents per |
|
|
31 March 2025 interim - paid 13 June 2025 (2024: 14 June 2024) |
0.79c |
2,987 |
1.4475c |
5,479 |
|
30 June 2025 interim - paid 5 September 2025 (2024: 9 September 2024) |
0.7934c |
3,000 |
1.4475c |
5,473 |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
|
Total |
1.5834c |
5,987 |
2.850c |
10,952 |
|
|
========= |
========= |
========= |
========= |
11. TRANSACTIONS WITH THE INVESTMENT ADVISER AND RELATED PARTY TRANSACTIONS
Fees payable to the Investment Adviser are shown in the Income Statement. As at 30 June 2025, the fee outstanding to the Investment Adviser was EUR 1,105,035 (30 June 2024: EUR 618,503). These balances have been settled by the Company on 3 July 2025.
AIFM fees for the period ended 30 June 2025 amount to EUR 68,456 (30 June 2024: EUR 60,330). As at 30 June 2025, the fee outstanding to the AIFM was EUR 11,103 (30 June 2024: EUR 18,949). The Company Secretary and Administrator fees for the period ended 30 June 2025 amount to EUR 91,318 (30 June 2024: EUR 88,911).
Fees are payable to the Directors in respect of the year to 31 December 2024 at an annual rate of EUR 75,000 to the Chairman, EUR 52,500 to the Chair of the Audit and Risk Committee and EUR 45,150 to the other Directors. Directors' fees paid during the six month period to 30 June 2025 was EUR 97,000.
During the period, the Company received repayments of its Shareholder loans to
The Directors had the following shareholdings in the Company, all of which were beneficially owned.
|
|
Ordinary shares |
Ordinary shares |
|
|
150,000 |
150,000 |
|
|
125,000 |
125,000 |
|
|
50,000 |
50,000 |
|
|
50,000 |
50,000 |
|
|
nil |
nil |
|
|
========= |
========= |
12. COMMITMENTS AND CONTINGENCIES
The Company did not have any new investments or capital commitments during the first six months of 2025 due to the Company being put into managed wind-down.
13. DISTRIBUTABLE RESERVES
The Company's distributable reserves consist of the special reserve and revenue reserve. Capital reserve represents unrealised investments and as such is not distributable.
The revenue reserve is distributable. The amount of the revenue reserve that is distributable is not necessarily the full amount of the reserve as disclosed within these financial statements of EUR 519,000 as at 30 June 2025 (31 December 2024: EUR 973,000).
14. POST BALANCE SHEET EVENTS
On 11 September 2025, the Company announced the effective cancellation of its share premium account, a decision approved by shareholders at the AGM on 19 June 2025. The High Court sanctioned this cancellation on 19 August 2025, and it was registered with
15. STATUS OF THIS REPORT
These half-yearly financial statements are not the Companyʼs statutory accounts for the purposes of section 434 of the Companies Act 2006. They are unaudited. The unaudited Interim Financial Report will be made available to the public at the Companyʼs registered office. The report will also be available in electronic format on the Companyʼs website, www.aquila-european-renewables.com.
The information for the year ended 31 December 2024 has been extracted from the last published audited financial statements, unless otherwise stated. The audited financial statements have been delivered to the Registrar of Companies.
The Interim Financial Report was approved by the Board on 30 September 2025.
OTHER INFORMATION
ALTERNATIVE PERFORMANCE MEASURES
In reporting financial information, the Company presents alternative performance measures ("APMs"), which are not defined or specified under the requirements of IFRS. The Company believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the Company. The APMs presented in this report are shown below:
DISCOUNT
The amount, expressed as a percentage, by which the share price is less than the net asset value per Ordinary Share.
|
As at 30 June 2025 |
|
|
|
NAV per Ordinary Share (cents) |
a |
73.87 |
|
Share price (cents) |
b |
62.60 |
|
|
--------------- |
--------------- |
|
Discount |
(b÷a)-1 |
15.26% |
|
|
========= |
========= |
ONGOING CHARGES
A measure, expressed as a percentage of average net assets (quarterly net assets averaged over the year), of the regular, recurring annual costs of running an investment company.
|
As at 30 June 2025 |
|
|
|
Average NAV (EUR '000) |
a |
314,633 |
|
Annualised expenses (EUR '000) |
b |
3,198 |
|
|
--------------- |
--------------- |
|
Ongoing charges |
(b÷a) |
1.0% |
|
|
========= |
========= |
TOTAL RETURN
A measure of performance that includes both income and capital returns. This takes into account capital gains and reinvestment of dividends paid out by the Company into the Ordinary Shares of the Company on the ex-dividend date.
|
As at 30 June 2025 |
|
Share price |
NAV |
|
Opening at 1 January 2025 (cents) |
a |
66.0 |
84.7 |
|
Dividend adjustment |
b |
1.6 |
1.6 |
|
Closing at 30 June 2025 (cents) |
c |
62.6 |
73.9 |
|
|
--------------- |
--------------- |
--------------- |
|
Total return |
(b÷a)-1 |
(2.8%) |
(10.9%) |
|
|
========= |
========= |
========= |
GROSS ASSET VALUE
The Company's gross assets comprise the net asset values of the Company's Ordinary Shares and the debt at the underlying SPV level, with the breakdown as follows:
|
|
|
Period ended |
Period ended |
Year ended |
|
Net Asset Value (EUR '000) |
a |
279,328 |
335,509 |
320,231 |
|
Debt at the SPV level (EUR '000) |
b |
144,721 |
164,782 |
151,987 |
|
RCF drawn (EUR '000) |
c |
- |
26,085 |
- |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
|
Gross Asset Value (EUR '000) |
a+b+c |
424,049 |
526,375 |
472,219 |
|
|
========= |
========= |
========= |
========= |
GEARING
The Company's gearing is calculated as total debt as a percentage of Gross Asset Value.
|
|
|
Period ended |
Period ended |
Year ended |
|
Gross Asset Value (EUR '000) |
a |
424,049 |
526,375 |
472,219 |
|
Debt at the SPV level (EUR '000) |
b |
144,721 |
164,782 |
151,987 |
|
RCF drawn (EUR '000) |
c |
- |
26,085 |
- |
|
|
--------------- |
--------------- |
--------------- |
--------------- |
|
Gearing ratio |
(b+c) ÷a |
34.1 |
36.3 |
32.2 |
|
|
========= |
========= |
========= |
========= |
Enquiries:
Company Secretary
Apex Listed Companies Services (
Tel: +44 (0) 20 4582 6470
The Half-yearly financial report will be submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
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